Please comment on the trend in Toyotas operating income over the past five years.

Toyota Motors Balance Sheet: Year Total Assets Operating Liabilities Net Operating Assets 2016 2017 2018 2019 2020 $ 443,184 $ 457,348 $ 472,154 $ 490,658 $ 566,065 $ 51,856 $ 51,736 $ 53,349 $ 43,226 $ 49,483 $ 391,327 $ 405,612 $ 418,805 $ 447,432 $ 516,582 Total Debt Total Equity and Claims Total Debt, Equity and Claims $ 174,143 $ 175,887 $ 183,183 $ 194,009 $ 233,269 $ 217,184 $ 229,725 $ 235,621 $ 253,423 $ 283,313 $ 391,327 $ 405,612 $ 418,805 $ 447,432 $ 516,582 Toyota Motors Income Stat ment: Year Total Revenue Cost of Revenue, Total Selling, General and Other expense Operating Income 2016 2017 2018 2019 2020 $ 250,884 $ 267,086 $ 274,779 $ 271,514 $ 247,405 $ 206,676 $ 217,174 $ 225,289 $ 222,594 $ 203,475 $ 26,077 $ 28,095 $ 30,158 $ 27,109 $ 23,951 $ 18,131 $ 21,817 $ 19,332 $ 21,811 $ 19,980 Given information for Toyota Motors: Cost of debt Toyota Motors (from the footnotes to the financial statements) Beta for Toyota Motors (from Yahoo or other financial sources) Normalized risk free rate of return in the market (observing the 10 rate on government issued securitie Equity risk premium (from historical studies of the market) Market value of debt (use book or amount disclosed in the footnotes if different) Number of common shares outstanding Market price of the common stock on July 12, 2021 Market value of equity (number of shares times the stock price) 1.84% 0.74 2.50% 5.00% 233,269 1,400 179.13 250,782 $ $ $ Calculate the required return (weighted average cost of capital) Market Weights Values Debt $ 233,269 48% Equity $ 250,782 52% $ 484,051 Required return (weighted average cost of capital).. Component Cost 1.84% 6.20% Weighted Cost 0.89% 3.21% 4.10% Calculate the Economic Profit (Economic Value Added) Net Operating Assets $ 391,327 $ 405,612 $ 418,805 $ 447,432 $ 516,582 times the required return 4.10% 4.10% 4.10% 4.10% 4.10% Required income in dollars $ 16,040 $ 16,626 $ 17,166 $ 18,340 $ 21,174 Year Operating Income earned Less required income Economic profit or loss) $ $ $ 2016 18,131 $ 16,040 $ 2,091 $ 2017 21,817 $ 16,626 $ 5,191 $ 2018 19,332 $ 17,166 $ 2,165 $ 2019 21,811 $ 18,340 $ 3,472 $ 2020 19,980 21,174 (1,195) Another way to look at this: Return on invested capital Weighted average cost of capital Spread 4.63% 4.10% 0.53% 5.38% 4.10% 1.28% 4.62% 4.10% 0.52% 4.87% 4.10% 0.78% 3.87% 4.10% -0.23%